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    Economics Study Set 3
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    Exam 5: Externalities, Environmental Policy, and Public Goods
  5. Question
    Figure 5-7 -Refer to Figure 5-7. Which of the Following Statements Is
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Figure 5-7 -Refer to Figure 5-7. Which of the Following Statements Is

Question 1

Question 1

Multiple Choice

Figure 5-7 Figure 5-7   -Refer to Figure 5-7. Which of the following statements is true? A)  At QE the benefits of reducing pollution outweighs the cost of pollution reduction. B)  At QB society is under allocating resources to pollution reduction. C)  The optimal quantity of pollution reduction is QB. D)  The optimal quantity of pollution reduction is QE.
-Refer to Figure 5-7. Which of the following statements is true?


A) At QE the benefits of reducing pollution outweighs the cost of pollution reduction.
B) At QB society is under allocating resources to pollution reduction.
C) The optimal quantity of pollution reduction is QB.
D) The optimal quantity of pollution reduction is QE.

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